Las Vegas Sun

March 28, 2024

Gibbons: Sandoval plan is unworkable and would cost the state money

 So says an internal memo I have obtained from the Gibbons administration on ex-Judge Brian Sandoval's budget plan announced today and posted elsewhere on this blog:

Sandoval Plan:

1. 4% across the board salary cuts. State employees have already taken a 4.6% furlough cut. We are more than half way through the year and all education will have contracts already in place so at best (apart from the fairness issue, maintenance of effort for ARRA $ etc.) this might equal $128,000,000

2. PEBS reform (if we get past the liability issue by changing it for future employees/retirees but retaining current benefits) the employer contribution to 75% from 85% (NOT 95%), probably equals $28,000,000

3. Privatization. Privatizing services typically does NOT work when health and human services are involved. So I would wipe out the Prison Medical Services and the Personnel suggestion as unworkable. Last session the privatizing of mail services was considered and it was less than $100,000 in savings. The increase in the use of rental cars, liability insurance etc in the use of these cars would probably make the motor pool not viable. Purchasing Services ensures that all the laws are followed objectively. If they remove all the laws concerning competitive bidding, wage laws and the Attorney General took over the Contract services provided by the purchasing division we could do this, but I do not think any of that has a snowballs chance. -0-

4. Credit line. I believe this is their attempt to say we would not have to make payments on the credit line if we did not use it. We are constitutionally mandated to payoff short term debt within a year. However, the $160,000,000 is used in the budget to balance expenses. So, while we might not use the exact amount we would need to get rid of $160,000,000 in expenses in order to not have to make payments so, $160,000,000.

5. Strategic Budget Reduction:

Elimination of Fire Marshall – This assumes 50% goes to local entities for providing the service but I don’t know 50% of what. I think the numbers reflect 50% of the entire biennium total, and of course we are will in our 7th month of the first year. Even at that 2.5 million divided by 17 counties comes to less than $150,000 which, with benefits is at best 1.5 people to do all fire official work. Oddly we would have a county fire official signing off on State buildings.

Elimination of Nevada Department of Investigation – Again, the assumption that half the savings would go to local entities. Same problem as above. Each county gets about $175,000. It is hard to get an undercover team with that amount.

It appears that Sandoval is suggesting that Government should increase the budget for Commission on Economic Development and Rural Community Development by 50%. So the suggestion is to reduce safety and increase economic development. Of all the debate about what government should do, I think everyone agrees safety is on top. THIS WOULD BE $5,000,000

The Licensed Personnel Program; Agricultural Experiment Station and Cooperative Extension Cuts I am not familiar with. The math does not work (i.e. 50% of first year and 100% of second) even if we weren’t past the halfway mark it does not work. So until further research -0-

6. Class size reduction: where do I begin? Maintenance of effort; Nevada Plan Liability; Bondholder issues, Federal Tax Issues; Ballot question/will of the people issues. -0-

So, if I do my math right, his “Short Term Deficit Plan” is very accurate. We have increased our deficit by $9,000,000!

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